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Comments on New England Regional State Committee* Presented to: MA Restructuring Roundtable

Comments on New England Regional State Committee* Presented to: MA Restructuring Roundtable By: Susan Coakley Northeast Energy Efficiency Partnerships, Inc. June 18, 2004 * Comments represent views of NEEP Staff, not necessarily of NEEP Board Members, Funders or Initiative Sponsors.

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Comments on New England Regional State Committee* Presented to: MA Restructuring Roundtable

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  1. Comments on New England Regional State Committee* Presented to: MA Restructuring Roundtable By: Susan Coakley Northeast Energy Efficiency Partnerships, Inc. June 18, 2004 * Comments represent views of NEEP Staff, not necessarily of NEEP Board Members, Funders or Initiative Sponsors.

  2. RSC-NE Is Good News for Energy Efficiency Broad Public Policy Perspective: • High level forum to address regional policy issues • Balance state and regional concerns • Broad perspective that considers multiple public policy goals – environmental, economic, fuel diversity and end-use energy efficiency Regional Resource and Demand-Side Planning: • Provides for regional consideration of a energy efficiency as part a resource portfolio to address system reliability and capacity needs Market Structure and Pricing Barriers: • Forum to address regional transmission pricing and cost allocation issues in a manner that promotes cost-effective end-use energy efficiency • Forum to propose market structures to capture additional energy efficiency resources

  3. Four Problems for RCS-NE to Fix: • Increased energy efficiency not included as part of a cost-effective risk mitigation strategy to meet system reliability needs. • Increased energy efficiency not considered as part of solutions in system expansion planning (except as an interim emergency measure). • Energy efficiency not afforded same cost recovery treatment as supply options to meet reliability and system needs (SW CT an exception – new precedent?). • No consistent or systematic capability to assess energy efficiency or demand-side resources – retrospectively or prospectively.

  4. Recommendations for the RCS-NE Agenda: • Regionally plan for and assess the potential for demand-side sources to address power system reliability and capacity needs. • Use risk mitigation analysis to assess the role of energy efficiency as part of a cost-effective resource portfolio that meets a range of public policy objectives. • Recommend market rules and structures that allow energy efficiency and demand-side resources to participate in market-based solicitations to meet power systems needs.

  5. Recommendations for the RSC-NE Agenda: • Recommend to New England states policies that can increase energy efficiency to address efficient reliability goals (codes, standards, targeted efficiency). • Develop regional protocols to consistently assess energy efficiency saving opportunities and impacts. • Recommend pricing policies that provide price signals to increase customer investments in energy efficiency (LMP). • Recommend cost allocation policies that afford the same treatment for demand-side and supply-side resources. • Provide for public input.

  6. For more information: Northeast Energy Efficiency Partnerships, Inc. 5 Militia Drive Lexington, Massachusetts 02421 781-860-9177 Scoakley@neep.org www.NEEP.org

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